In one of the few instances in which Geffen's instincts were proved wrong, Geffen believed that the Eagles' popularity had peaked with their first album. Desperado had been a commercial bust, and now it seemed to him to be a question whether they would even finish a third. After the group had gone to London with Glyn Johns, infighting had forced them to return after only six of a planned twelve-week recording stand. They had recorded only two songs.

It was just before Christmas 1973 when the band's feelings toward Geffen grew even more adversarial. Their business manager informed them that they had not made any money on their recently completed Desperado tour, as the profits had gone back to the management company, which he said was owed the money from back commissions. Frey, Henley, and the others were irate as they realized they did not have money to buy Christmas presents.

One day, after calling the management office to ask for a limousine to take the group to the airport for a concert date, Glenn Frey decided he could take no more. Irving Azoff, who had booked the concert, put his hand over the receiver and asked Elliot Roberts what he should tell Frey.

"Tell Glenn he doesn't get a limo," Roberts snapped. "Tell him to get a hippie in a cab and go to the fuckin' airport!"